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Bank PO / Clerk / RBI

PO, Clerk, RRB — Quantitative, Reasoning, GK

494 Q 3 Topics Take Test
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Difficulty: All Easy Medium Hard 261–270 of 494
Topics in Bank PO / Clerk / RBI
Q.261 Easy General Awareness
Which banking regulation framework replaced the Basel II framework?
A Basel I
B Basel III
C Basel IV
D Basel Standard
Correct Answer:  B. Basel III
EXPLANATION

Basel III replaced Basel II framework with stricter capital requirements and liquidity standards implemented post-2008 financial crisis.

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Q.262 Medium General Awareness
As per RBI's 2024 guidelines, what is the maximum Loan-to-Value (LTV) ratio for housing loans?
A 70%
B 80%
C 90%
D 85%
Correct Answer:  B. 80%
EXPLANATION

RBI guidelines specify 80% as the maximum LTV ratio for housing loans to manage systemic risk.

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Q.263 Hard General Awareness
What is the primary role of the Financial Stability and Development Council (FSDC)?
A To regulate stock exchanges
B To coordinate among financial regulators for financial stability
C To manage public sector banks
D To monitor international trade
Correct Answer:  B. To coordinate among financial regulators for financial stability
EXPLANATION

FSDC, chaired by the Finance Minister, coordinates between RBI, SEBI, IRDA, and other financial regulators to ensure financial stability.

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Q.264 Hard General Awareness
Which act governs the regulation of microfinance institutions in India?
A Microfinance Institutions (Development and Regulation) Act, 2006
B Banking Regulation Act, 1949
C RBI Act, 1934
D Pradhan Mantri Mudra Yojana Act, 2015
Correct Answer:  A. Microfinance Institutions (Development and Regulation) Act, 2006
EXPLANATION

The Microfinance Institutions (Development and Regulation) Act, 2006 specifically regulates MFIs, focusing on transparency and consumer protection.

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Q.265 Medium General Awareness
What does CASA ratio indicate in banking?
A Cost to Assets and Savings Accounts
B Current and Savings Accounts as a proportion of total deposits
C Capital and Subordinated debt Accounts
D Compliance and Safety Account Standards
Correct Answer:  B. Current and Savings Accounts as a proportion of total deposits
EXPLANATION

CASA (Current Account Saving Account) ratio measures the proportion of low-cost deposits, indicating deposit quality and profitability.

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Q.266 Medium General Awareness
Which of the following is a regulatory tool used by RBI to control inflation and manage money supply?
A Quantitative Easing
B Open Market Operations (OMO)
C Fiscal policy measures
D Tax rate adjustments
Correct Answer:  B. Open Market Operations (OMO)
EXPLANATION

OMO involves buying and selling government securities to regulate liquidity and money supply in the banking system.

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Q.267 Medium General Awareness
Under which facility can banks borrow money from RBI on a temporary basis to manage short-term liquidity mismatches?
A Open Market Operations (OMO)
B Repo Operations
C Liquidity Adjustment Facility (LAF)
D Collateralized Borrowing and Lending Obligation (CBLO)
Correct Answer:  C. Liquidity Adjustment Facility (LAF)
EXPLANATION

LAF allows banks to borrow through Repo (overnight) or Reverse Repo to manage short-term liquidity needs.

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Q.268 Easy General Awareness
What is the tenure period for the current Governor of the Reserve Bank of India as of 2024-2025?
A 3 years
B 5 years
C 6 years
D 7 years
Correct Answer:  C. 6 years
EXPLANATION

The RBI Governor's tenure is typically 6 years or until the age of 65 years, whichever is earlier.

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Q.269 Hard General Awareness
Which committee was constituted to review the regulation of shadow banking in India?
A Patel Committee
B Narasimham Committee
C Y.V. Reddy Committee
D Nayak Committee
Correct Answer:  D. Nayak Committee
EXPLANATION

The Nayak Committee (2013) examined shadow banking entities and recommended a regulatory framework for NBFCs engaged in banking activities.

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Q.270 Medium General Awareness
What is the purpose of the Marginal Standing Facility (MSF) introduced by RBI?
A To provide overnight lending to banks against approved securities
B To regulate stock market operations
C To manage foreign exchange reserves
D To monitor non-performing assets
Correct Answer:  A. To provide overnight lending to banks against approved securities
EXPLANATION

MSF allows scheduled banks to borrow funds overnight from RBI at a penal rate against eligible securities when other liquidity sources are exhausted.

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